The UK Government has confirmed its intention to raise Remote Gaming Duty to 40%, a near-doubling of today’s 21% rate, as outlined in its newly published proposals on gambling duties. The Treasury argues the change will modernise the tax framework and boost revenues. The industry, however, warns that the move could reshape the sector in ways few policymakers seem prepared for.
The official impact assessment acknowledges the overhaul will generate less than forecast if players migrate to offshore sites — yet the package is still scheduled to take effect from April 2026. For online sports betting, a new 25% duty is planned for April 2027, while bingo duty will be abolished entirely.
Below, BritishGambler.co.uk sets out the facts, the risks, and our standpoint on what this means for players, operators, and the wider UK economy.
What the Government Is Changing
The proposed reforms create a single, simplified higher-rate duty for remote casino gaming. According to Treasury statements and independent reporting:
- Remote Gaming Duty increases to 40% from 21%.
- Online betting duty rises to 25% from 15% in 2027.
- High-street bookmakers and racing operators remain at 15%.
- Bingo duty is abolished, on the grounds it is a low-risk product.
The Government believes this will raise approximately £1.1 billion annually by 2030, though the official documents concede that consumer behaviour could dilute those gains.
Why the Increase Raises Concerns
It pushes players toward unregulated operators
A significant tax jump leaves UK-licensed operators with little room to absorb costs. In practice, players may see poorer odds, fewer promotions, or more restrictive offers. This is exactly the scenario in which offshore operators thrive — often without consumer protection, fair-play safeguards, or recourse to UK law.
It undermines medium-sized and independent operators
Large global brands can redistribute costs across multiple markets. Mid-tier operators cannot. For them, a 40% duty is not a surcharge — it is existential. Expect consolidation, withdrawals from the market, or businesses relocating abroad to stay competitive. Fewer operators mean fewer choices for players and a less diverse, less innovative gambling ecosystem.
It may fail to hit revenue targets
Taxation works only when the underlying market remains stable. If the regulated market shrinks, tax receipts shrink with it. Economists refer to this as a Laffer-curve effect: raising the rate can reduce the intake if consumers exit the system entirely. The Treasury’s own modelling hints at this risk.
It discourages investment in the UK
High, uncertain taxation is a deterrent for any industry, but particularly for one competing on technology, user experience, and compliance infrastructure. The UK has historically been a leading global hub for regulated online gambling. A sharp increase in operational costs could push future investment — and the jobs tied to it — offshore.
BritishGambler.co.uk’s Statement
At BritishGambler.co.uk, we believe responsible gambling flourishes when the regulated market remains strong, diverse, and accessible. The proposed 40% Remote Gaming Duty places that ecosystem at risk.
Our position is simple:
- A tax rise of this scale will push gamblers toward unregulated, unprotected offshore operators.
- It will force medium-sized UK businesses to close or move abroad, hollowing out competition.
- It is unlikely to deliver the projected revenues, because those forecasts assume today’s levels of participation are sustainable under dramatically higher costs.
- It will drive investment out of the UK, resulting in fewer jobs and, ultimately, lower long-term tax income.
Impact on Bonuses, Odds, and the UK iGaming Affiliate Sector
A sharp rise in duty will not only reshape operator margins — it will directly affect what players see on-screen. Higher tax pressure typically results in smaller welcome bonuses, reduced free-spin packages, stricter wagering requirements (already capped at 10x), and less competitive odds at legal UK betting sites for sports bettors. These adjustments are already being modelled by several major casino operators as they prepare for the impact of a 40% rate. In other words, we can say it can be an end to welcome offers as we know them.
For sports betting and casino affiliates like British Gambler, the consequences are immediate and severe. Bonus reductions and poorer odds make regulated brands less attractive to players, which in turn lowers conversion rates and long-term value. Gambling sites then respond by cutting CPA payments, reducing revenue-share percentages, or withdrawing paid placements entirely.
We have already seen the first signs of this shift. One of our long-standing partners has notified us that they will stop paying for the promotion of six of the seven brands we currently support, citing the upcoming tax rise and the need to reduce marketing expenditure. This is not an isolated case: it is a preview of what the affiliate gambling market may face industry-wide if the proposals proceed unchanged.
We urge the Government and the UK Gambling Commission to consider the consequences beyond headline revenue projections. A well-regulated market is one that encourages responsible play, transparency, and consumer protection. Weakening that market — even unintentionally — places British players at greater risk.
A balanced, evidence-based approach could still deliver fiscal stability without destabilising the sector. Consultation, dialogue, and realistic modelling are urgently needed before the UK makes a historic misstep.
